The Nigerian Stock Exchange (NSE) has said the revision of Stamp Duty on securities transactions to 0.08percent from 0.075percent will become effective from December 7, 2020. The change is necessitated by the classification of Contract Notes as an ad valorem tax by the Federal Inland Revenue Service (FIRS), the NSE said.

“As a responsive self-regulatory organization, The Exchange is committed to enforcing rules and ensuring compliance with regulations and other applicable government requirements. While it had maintained a stamp duty rate of 0.075% in line with what was obtainable in the Nigerian capital market, it is imperative that the FIRS’ stamp duty regime of 0.08percent on securities transactions is applied. To this end, the Central Securities Clearing System Plc (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08percent from Monday, 7 December 2020”, it started further.

Related News

The Exchange has also issued the requisite guidance to Dealing Member Firms to put in place the necessary measures to ensure compliance and communicate this change to investors in a timely manner.

Capital market stakeholders requiring further information can refer to the market circular issued by The Exchange on 17 November 2020 captioned “Administration of Stamp Duty on Securities Transactions”, which can be accessed on The Exchange’s website at http://www.nse.com.ng. Investors are also advised to contact their respective stockbrokers for more information or clarification.

More from our Markets Column
Read Next
Ghana Stock Exchange: 30-year-old First Atlantic Bank becomes first lender to list in three years

Nigeria’s stock market falls further

By Iheanyi Nwachukwu • December 3, 2020

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp